Which of these transactions will not be recorded in cash book?
Correct answer: C. Salary remained outstanding
- A. Cash received from debtors
- B. Cash paid to creditors
- C. Salary remained outstanding
- D. Cash deposited with bank
Explanation
A cash book records transactions involving cash or bank. Salary that remains outstanding creates a liability but no cash movement, so it is recorded through an adjustment entry rather than in the cash book.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
The closing balance of a petty cash book is a / an___________?
Which column of a cash book will not have credit balance___________?
Petty cash balance is a/an___________?
In a three column cash book_______________does not exist?
Which of the following is an one sided error?
Which of the following error is an error of principle